The wind generation is increasing, lowering spot prices
The European immediate power prices dropped on Tuesday, primarily due to the bearish impact of forecasts that German wind power production would more than triple in the next day.
By 0745 GMT, the German baseload electricity for Wednesday had fallen by 13.7% to 89.5 euros (97.93 dollars) per megawatt-hour (MWH).
The same French contract, which closed at 68 Euros, was not traded in the range of 38-43 euro bid-ask.
LSEG data indicated that German wind generation is expected to increase by 3.0 GW to 5.2 GW on Wednesday.
The French nuclear production capacity increased by one percentage point, to 72%.
The summer maintenance season in Switzerland has begun. Axpo Beznau 1 is responsible for 10% of the power supply to the country and began a two-week blackout.
In both major markets, the demand for power has declined.
On the day ahead, Germany would lose 200 MW to reach 55.5 GW. France would shed 500 MW for 47.2 GW.
On the forward curve, German baseload for the year ahead gained 0.3% to 81.0 euros/MWh after hitting a four-month-low of 77.05 euro in the previous session.
The French equivalent, which closed at 59.96 euro/MWh (a 14-month-low), was not traded.
The benchmark carbon contract on the European market was down by 1.8% to 61.7 euros per metric tonne. The next support is just below the 60.0 euro level seen in October 2024.
The U.S. President Trump's announcement of import tariffs, followed by China’s response, has led to an unprecedented erosion in global wealth, affecting most asset classes including energy and emissions allowances.
Analysts Veyt stated that while the decline in equity prices dominates headlines, the energy prices, ranging from gas to oil, have fallen further, creating a bearish influence on the carbon. ($1 = 0.9139 euros) (Reporting and editing by David Evans, Vera Eckert)
(source: Reuters)
